With its 40-stock index named SX40, MCX-SX is the third full-fledged equity bourse after BSE and NSE.

The bourse was formally launched by Finance Minister P Chidambaram on Saturday.

SX40 will be a free-float based index of large-cap and liquid stocks, representing diverse sectors. The base value will be 10,000 with a base date of March 31, 2010, MCX-SX Vice-chairman Jignesh Shah said at the launch.

The index is designed to measure the economic performance with better representation of various industries and sectors based on the ICB (industry classification benchmark), a global classification from the FTSE of the London bourse.

The index allows fast entry for companies with better free float, market cap and liquidity. SX40 includes companies that have a minimum free float of 10 per cent and is within the top 100 liquid companies, MCX-SX Managing Director & Chief Executive Joseph Massey said.

Under the capital market segment, initially equity shares of 1,116 companies will be admitted for trading under the "permitted to trade" category, Shah said.

Shah added that there is also huge opportunity in bonds, interest rates derivatives, currency and SME markets.

The exchange hopes to launch index on several sectors in the near future, Massey said. He pointed out that out of the 700 membership applications received by the exchange, 405 applications have been registered by Sebi.

"We have not set up any volume target, but there will be systematic growth," Shah added.

Shah said, "All national exchanges are at par on compliances of market regulator. Our compliance regulations will be more than 100 per cent as we are dealing with 10 regulators in the world."

The exchange has its own clearing corporation which will clear the trades in equity and equity derivatives, Massey said.

MCX-SX received commencement certificate from the market regulator Sebi for trading in new segments such as equity, futures and options on equity, interest rate derivatives and wholesale debt market in December last year.